WASHINGTON (AP) – House Democrats on Monday proposed an additional $ 1,400 in direct payments to individuals as Congress began putting together a $ 1.9 trillion COVID-19 aid package that follows President Joe Biden’s plan to combat the pandemic. and revive a still dizzying economy..
Democrats on the Weights and Means Committee would extend tax breaks for families with children, for people with lower incomes and those purchasing health insurance from marketplaces created by the 2010 Affordable Care Act. The panel, which plans to approve the measure before the end of the week, would also provide health care subsidies to some unemployed workers.
Less than three weeks after his presidency, Biden has stated that overcoming the virus and resuscitating the economy are his top priorities. The coronavirus pandemic has killed more than 460,000 Americans, while the economy has lost 10 million jobs since the crisis began last year.
Monday’s Ways and Means’ disclosure of his share of the package – for over $ 900 billion, nearly half of Biden’s entire plan – came with Congressional Democratic leaders hoping to send the legislation to the president by mid-March before signing, when the existing emergency unemployment benefits expire. Their schedule reflects the desire of Biden and the Democrats in Congress to show that they can respond quickly and decisively to the crisis, even if, as it seems likely, they must struggle past solid Republican opposition.
“While it is still our hope that Republicans will join us to do good to the American people, the urgency of the moment requires that we act without further delay,” said Ways and Means chairman Richard Neal, D-Mass.
Texas Rep. Kevin Brady, the most senior Republican on that committee, criticized the Democrats for continuing the massive measure “without a compromise between two parties.” He said the GOP wants to focus on the distribution of vaccines and more targeted aid for workers, families and small businesses – essentially ahead of amendments Republicans are expected to propose during committee votes this week, some of which could receive Democratic support.
House Education and Labor Committee Democrats also reviewed their plans on Monday. Their $ 350 billion package includes $ 130 billion to help schools reopen safely, $ 40 billion for pandemic-hit colleges, and a plan to gradually increase the federal minimum wage to $ 15 an hour. The minimum wage hike is facing a tough climb, and even Biden has admitted it probably won’t survive.
The Financial Services Committee’s proposal includes $ 50 billion to help the Federal Emergency Management Agency deal with pandemic costs, plus $ 25 billion for struggling rental home owners and those at risk of homelessness. Expenditure of the Committee on Transportation and Infrastructure includes grants of $ 30 billion for struggling transit agencies with greatly reduced passenger numbers.
Democrats have only a small majority in the House and Senate. In addition to the Republican opposition that could be unanimous, Democrats will have to strike a balance between party moderates worried about a package going too far and progressives looking to push Biden as far to the left as possible.
On a possible battlefield within the party, the Ways and Means Democrats proposed limiting full $ 1,400 aid payments to those earning $ 75,000 or less, and tapering them until they hit $ 100,000. Couples making up to $ 150,000 would be entitled to $ 2,800 in aid payments, which would gradually decline and disappear completely for those making $ 200,000.
The income levels at which people qualify for the direct payments have divided Democrats, with moderates arguing that emergency aid should be more focused on the most deprived. Biden has said he will not allow payments per person to fall below $ 1,400, but has indicated that he has flexibility about the income thresholds.
“There is currently a discussion about what that threshold will look like. A conclusion is not yet final, ”said White House press secretary Jen Psaki.
Congress approved direct payments of $ 600 per person in December. The additional $ 1,400 would bring the total to $ 2,000. Democrats have been seeking that amount for months, and it gained support from then-President Donald Trump during his failed reelection campaign, even though it was opposed by many Congressional Republicans.
The Ways and Means proposal would increase unemployment relief to $ 400 per week from the current $ 300. Benefits would last until August 29, instead of March 14 as currently scheduled.
The plan would combat child poverty by increasing the child discount for families by one year. Now capped at $ 2,000 per year, it would go up to $ 3,600 per child under 6 and up to $ 3,000 for children under 17. The credit would be paid out monthly, even to families who don’t owe federal income tax – a change from current policy.
The bill also offers people several ways to get and maintain health insurance, including an early test of Biden’s promise to build on Obama’s health law.
One section would soften the subsidies provided under former President Barack Obama’s health law. The Biden administration has already announced a special three-month sign-up period for ACA coverage starting next Monday. The more generous financial support in the bill would be available this year and next.
The bill would also cover 85% of premium costs for employees trying to keep their job-based health insurance after they are laid off. A federal law known as COBRA already allows them to temporarily keep their old employer’s health plan, but they typically have to pay prohibitively high premiums. The help would be available through September 30.
For employees without children, the plan proposes a significant extension of the income tax credit – a repayable credit currently claimed by taxpayers who earn an average of $ 20,000 per year. The EITC is seen by its proponents as an important tool for poverty reduction for working people.
The legislation calls for almost tripling the maximum credit for employees without children and for greater eligibility.
The details of the bills were announced as a report from the impartial Congressional Budget Office, which stated that raising the minimum wage to $ 15 an hour would increase unemployment even if it increases wages for millions of workers.
Progressives like Senator Bernie Sanders, I-Vt., Author of the minimum wage law, want Democrats to fight for it now. It is facing opposition from the GOP, and some Democratic moderates are wary that it will harm small businesses during the pandemic.
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The Associated Press writers, Marcy Gordon in Washington and Collin Binkley in Boston, contributed to this report.